The Division of State Internal Audit (DSIA) provides independent and objective, general, technical, and audit assistance upon request. DSIA assists in the development of the internal audit programs through training and technical assistance. DSIA also administers the State Employee Fraud, Waste, and Abuse Hotline, which provides state employees with a way to report instances of fraud, waste, and abuse that may be occurring in the Commonwealth.
Internal audit programs were created to help address management's needs. Internal audit programs report to management rather than to owners as external auditors typically do. As resources shrink in state government, internal audit program staff are increasingly called upon to provide management with information needed for organizational re-engineering and to appraise the organization's economy and efficiency of operations.
The Institute of Internal Auditors has adopted the following definition of internal auditing:
"Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes."
Internal audit programs review the reliability and integrity of information, compliance with policies and regulations, the safeguarding of assets, the economical and efficient use of resources, and established operational goals and objectives. Internal audits encompass the review of financial activities and various other operations including systems, production, engineering, marketing, and human resources operations.
Internal auditors conduct various types of audits, depending on the needs of management and what they want to know. These are typically...